A firm is expected to pay a dividend of $1.00 next year and the dividend is expected to grow at a constant rate of 4 percent over time. Some investors have required returns on investments in equity of 12 percent, some 10 percent, and some 8 percent. The market price of this firm’s stock will be slightly above _________.
举一反三
- In which of the following situations would you prefer to be making a loan? A: The interest rate is 9 percent and the expected inflation rate is 7 percent. B: The interest rate is 4 percent and the expected inflation rate is 1 percent. C: The interest rate is 13 percent and the expected inflation rate is 15 percent. D: The interest rate is 25 percent and the expected inflation rate is 50 percent.
- If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, then an investor should be indifferent between dollars and euros if the expected dollar depreciation against the euro is 4 percent.
- In the event of a 1% fall in the market rate, the return on the stock is expected ________. (降低不到1%). A: decrease by less than 1 percent B: decrease by at least 1 percent C: to decrease by less than 1 percent D: to decrease by at least 1 percent
- The duration of a ten - year, 10 percent coupon bond when the interest rate is 10 percent is 6.76 years. What happens to the price of the bond if the interest rate falls to 8 percent?
- If the nominal interest rate per year is 10 percent and the inflation rate is 4 percent, what is the real rate of interest? A: 10.0 percent B: 4.1 percent C: 5.8 percent D: 14.0 percent